McKright Recliners manufactures leather recliners and uses Rexble budgeting and a standard cost system. McKnight alocates ovechead based on yards of direct majeriat. The comipany's performance repoct includes the following telected data: (Click the icon to view the selected data.) Read the requirements. Requirement 1. Prepare a foxible budget based on the actual number of tociners sold. (Round budget amounts per unit to the nearest cent) Data table eficiency. Fred overtesd cost, and fired crechead volume variances. Round to the nearest dollar. Begin with the cost variances. Select the required formulas, compule the cost variances for drect materials and dinect labor, and idently whecher each variance is favorable (F) or unfavorable (U) (Round your answen to the neacest whole dollar, Abbeeviations uted: MC= achual cott AQ= actual quantify, FOH= fxed overtiead; SC = standard cost; SO= standard quanfty) Next compute the elliciency variances. Select the required formulas, compule the efficiency variances for drect malerials and dreet labor, and ibentfy whether esch variance is tavorable (F) or untroorable (U). (Round your antwors io the nearest whole dollar. Abbreviatont vied. AC = actual cost, AQ= actual quantly, FOH = fied ovochead, SC = standard cost, SO = atandard quantly) Now compule the variable overhead cost and effiency variances. Select the requised formulas, compute the variable overhead cost and efficiency variances, and idensly ahemer cach varance is standard quantify, VOH= variable overtidi) Now concule the foed evehead cost and volume variances. Select the required tormulas, compute the fixed ovemead cost and volume variances, and idendty aheober each variance is frocrable quantity Now compute the fxed overtead cost and volume variances. Select the required formulas, compulo the foced overhead cost and volume variances, and identify abether each varance is farorable (F) or untmorable (U). (Round your answers to the nearest whole dollor. Abbieviabons used: AC= actual cost, AC= actual quantiy, FOH = ficed oveithad, SC = standard cost: SO = itandard quaving) Requirement 3. Hove Mcknight's mansgen done a good job of a peor job controling materiss, labor, and cremead coste? Wwy? The variancet corquled in Requirement 2 suggest that the managers have done a job controling maberials and labor costs. The deect materiais cost variance and dirwet laber eficiency variance help ofset the drect laber cost variake and drect materials effiency variance. Managens have done a job controding oremead costa as evidenced by the tact that of the everhad variances aoe Aeguirement 4, Descrite how McKnighis managers can benet trom the sandard contng wsiem